Childcare funding - what's available and how to apply

Carly S
3 days ago
3 min read

We understand that childcare is one of the biggest expenses many families face, and understanding the different funding options can sometimes feel overwhelming.

At Hassocks Day Nursery, we offer a range of sessions and accept several government funding and payment schemes to help make childcare more affordable.

Below is an overview of the main options available and how they work.

Government Funding

There are two types of funding available for eligible families:

30 hours free childcare
15 hours free childcare

Working Families 30 hours childcare

Eligible working families may be able to receive up to 30 hours of funded childcare per week for children aged 9 months up to school age.

Funding begins from the term after your child turns 9 months and to qualify, you must usually:

be working (or starting work soon)
meet the minimum income requirements
earn less than the maximum income threshold.
some families on parental leave or certain statutory payments may also qualify.

Other restrictions may apply do see an eligibility checker for further information.

Universal funding for all 3 and 4 year olds 15 hours for all families in England

All 3 and 4 year olds, regardless of income, benefit status or family circumstances are eligible for 15 hours government funding. This is paid the term after your child turns 3.

Stretched funding at Hassocks Day Nursery

Government funding is provided over 38 term-time weeks. As Hassocks Day Nursery is open for 51 weeks of the year (or 42 weeks if attending Term Time only) we stretch your funded hours across the year so families can benefit from a consistent number of funded hours each week. This means you will receive:

30 hours funding:

22 hours per week if attending full time
27 hours per week if attending term time only

15 hours funding:

11 hours per week if attending full time
13.5 hours per week if attending term time only

Applying for childcare funding

To apply for funded childcare you need to:

Create a Childcare Account on the Government website.
Apply for your funding
If approved you will receive an 11 digit code
Complete our funding form, including this 11 digit code
Ensure you are attending the setting on the local authority's official Headcount Day, which usually takes place during the first few weeks of each term.

Tax-Free Childcare

Tax Free childcare is a Government scheme that provides a £2 top-up for every £8 that you pay towards childcare. You can save up to £2,000 per child, per year through this scheme.

To be eligible you must

be working (or starting work soon)
meet the minimum income requirements
earn less than the maximum income threshold.

Families receiving Universal Credit childcare support or using a Childcare Voucher scheme cannot also claim Tax-Free Childcare.

Further restrictions may apply. See here for further detail

How Tax-free childcare works

You will need to create a Childcare Account on the Government website.
Once set up, you pay into this account and the Government will add a further 20% into your account.
Search for and connect Hassocks Day Nursery to your account
You then pay Hassocks Day Nursery directly from this account
You will need to reconfirm your eligibility every 3 months, which you do through your online account.

Workplace Nursery Scheme - e.g. Enjoy Benefits

A Workplace Nursery Scheme that allows eligible employees to pay nursery fees through salary sacrifice, potentially reducing the amount of Income Tax and National Insurance they pay. An example of a workplace nursery scheme is Enjoy Benefits.

It enables employees who choose to use a nursery setting for the care of their child, to save money as a result of reduced tax and national insurance payments. This benefit can be used from birth up to the age of 5 (or when the child goes to school). Most schemes require your monthly nursery fees to be at least £890 per month to qualify.

How a Workplace Nursery Scheme works

Your workplace partners with your chosen nursery
The nursery costs are paid for by your workplace
Your work place then deducts these costs from your gross salary, resulting in lower NI and Tax payments for you

Speak to your workplace to see if they offer or will be happy to offer a workplace nursery scheme. It can be especially beneficial if you or your partner earn too much to qualify for the 30 hours childcare funding or Tax-free Childcare.

Funding and payment support

If you're unsure which funding option is right for your family, or you're worried about childcare costs, please get in touch.

Our team is always happy to talk through your options and help you understand what support may be available. You can also find out more about funding and payment support here.

Finally, if you are struggling to afford your childcare costs please do talk to us.